GoDaddy (NYSE:GDDY) Posts Quarterly Earnings Results, Beats Estimates By $0.18 EPS

Key Points

• GoDaddy beat quarterly estimates: Earnings per share came in at $2.08 versus the $1.90 consensus, while revenue reached $1.34 billion, up 6.1% year over year and slightly above expectations.
• AI product adoption is accelerating: Airo’s annualized bookings more than doubled sequentially to over $100 million. Management reaffirmed its full-year outlook, including approximately $1.8 billion in free cash flow and revenue toward the high end of guidance.
• Risks remain for investors: Airo’s higher inference and third-party model costs are expected to pressure gross margins, while analysts maintain a consensus “Hold” rating with an average price target of $113.50.

GoDaddy (NYSE:GDDY - Get Free Report) announced its quarterly earnings data on Thursday. The technology company reported $2.08 earnings per share for the quarter, beating the consensus estimate of $1.90 by $0.18, FiscalAI reports. The firm had revenue of $1.34 billion for the quarter, compared to analyst estimates of $1.33 billion. GoDaddy had a net margin of 17.83% and a return on equity of 660.96%. The business's quarterly revenue was up 6.1% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.51 earnings per share.

Here are the key takeaways from GoDaddy's conference call:

• Airo adoption accelerated, with annualized bookings more than doubling sequentially to over $100 million and contributing incrementally to total bookings despite cannibalizing legacy website products. Airo’s attach rates, free-to-paid conversion, customer satisfaction, and multi-product adoption remain encouraging.
• GoDaddy reported solid Q3 execution, including 6% bookings and revenue growth, normalized EBITDA margin expansion of approximately 120 basis points to 33%, and $481 million in free cash flow. Management reaffirmed its full-year outlook, including approximately $1.8 billion in free cash flow and revenue toward the high end of its guidance range.
• The company continues to benefit from strong customer economics, with retention above 85%, more than half of customers using at least two paid products, and 70% of new Airo customers attaching a second paid product. GoDaddy also repurchased $477 million of stock in Q3 and $1.4 billion year to date.
• Management expects gross-margin pressure as Airo carries higher inference and third-party model costs than internally developed legacy products, although operating efficiencies and AI-driven productivity are expected to offset the impact at the EBITDA level. The company also cited increased industry discounting on domains and freemium hosting offers.
• GoDaddy is investing in agent-friendly APIs and Agent Name Service as the internet shifts toward AI-driven discovery and transactions, but adoption and monetization remain early. Management described ANS as a long-term opportunity that is not included in current financial projections.

GoDaddy Stock Down 0.9%

Shares of GoDaddy stock traded down $0.91 on Thursday, hitting $105.63. The company had a trading volume of 2,165,228 shares, compared to its average volume of 1,537,393. GoDaddy has a 1 year low of $71.59 and a 1 year high of $137.93. The company has a debt-to-equity ratio of 561.10, a quick ratio of 0.63 and a current ratio of 0.63. The stock has a 50 day moving average of $101.03 and a 200-day moving average of $92.11. The stock has a market capitalization of $13.38 billion, a price-to-earnings ratio of 15.81 and a beta of 0.94.

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on the company. UBS Group set a $140.00 price target on GoDaddy in a research note on Monday. Royal Bank Of Canada lowered GoDaddy from an "outperform" rating to a "sector perform" rating and set a $95.00 price target on the stock. in a report on Sunday, October 11th. Raymond James Financial cut GoDaddy from a "strong-buy" rating to an "outperform" rating and set a $100.00 price objective for the company. in a research note on Friday, July 31st. Citigroup decreased their price objective on GoDaddy from $110.00 to $105.00 and set a "buy" rating for the company in a report on Monday, August 3rd. Finally, Piper Sandler reaffirmed a "neutral" rating and set a $95.00 target price (up from $93.00) on shares of GoDaddy in a research report on Friday, July 31st. Nine equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company has a consensus rating of "Hold" and an average price target of $113.50.

Key Headlines Impacting GoDaddy

Here are the key news stories impacting GoDaddy this week:

• Positive Sentiment: GoDaddy reported third-quarter 2026 earnings of $2.08 per share, well above analyst estimates and up from $1.51 a year earlier. Revenue rose to $1.34 billion, slightly exceeding the $1.33 billion consensus estimate. GoDaddy Beats Q3 Earnings and Revenue Estimates
• Positive Sentiment: Management said it expects to reach the high end of its full-year revenue guidance, reinforcing confidence in demand and execution. The combination of revenue growth and an earnings beat could support the investment case for GDDY. GoDaddy Expects to Hit High End of Full-Year Revenue Guidance
• Neutral Sentiment: The earnings release and conference call give investors additional detail on quarterly performance and the company’s outlook. While the results exceeded expectations, investors may have been looking for a larger upside surprise or stronger forward commentary before bidding the shares higher. GoDaddy Third Quarter 2026 Financial Results
• Negative Sentiment: The Shareholders Foundation announced a lawsuit filed against GoDaddy on behalf of certain investors. Although the notice does not establish liability, potential litigation creates a legal and reputational overhang that could weigh on sentiment. GoDaddy Investor Lawsuit Alert

Insider Activity at GoDaddy

In other GoDaddy news, CFO Mark McCaffrey sold 5,873 shares of the firm's stock in a transaction on Wednesday, September 2nd. The stock was sold at an average price of $100.91, for a total transaction of $592,644.43. Following the transaction, the chief financial officer directly owned 99,855 shares in the company, valued at approximately $10,076,368.05. This trade represents a 5.55% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Sigal Zarmi sold 350 shares of the firm's stock in a transaction on Tuesday, September 1st. The shares were sold at an average price of $97.44, for a total value of $34,104.00. Following the transaction, the director owned 8,283 shares in the company, valued at approximately $807,095.52. This trade represents a 4.05% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 31,358 shares of company stock valued at $3,031,831 over the last 90 days. Corporate insiders own 0.93% of the company's stock.

About GoDaddy

GoDaddy Inc NYSE: GDDY is a global technology company that provides online tools and services to entrepreneurs, small businesses and individuals. Its platform helps customers establish, manage and grow an online presence, with offerings that include domain-name registration, website hosting, website and online-store builders, professional email and digital marketing tools.

The company also provides services designed to support commerce and customer engagement, including e-commerce functionality, online appointment scheduling, payments and other business-management capabilities.

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